Radian Corporation provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc.. The company was founded in 1977 and is based in Philadelphia, Pennsylvania.
RDN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Radian Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Radian Group Inc ranked in the 92th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 2205% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Radian Group Inc, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 9.14 -- which is good for besting 65.82% of its peer stocks (US stocks in the Financial Services sector with positive cash flow).
Its compound free cash flow growth rate, as measured over the past 5.26 years, is 0.75% -- higher than 86.74% of stocks in our DCF forecasting set.
Radian Group Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 10.04% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Radian Group Inc? See ENVA, NOAH, CPSS, YUANF, and LPRO.
2020 will go down in the history books for many reasons, but one bright spot in a year of darkness is the performance of the U.S. residential real estate markets. December 2020, like much of the year, recorded very strong home price appreciation. According to Radian Home Price Index (HPI) data released today by Red Bell Real Estate, LLC, a Radian Group Inc. company (NYSE: RDN), home prices nationally rose from the end of November 2020 to the end of December 2020 at an annualized rate of 8.5 percent. The Radian HPI is the most comprehensive and timely measure of U.S. housing market prices and conditions.
PHILADELPHIA--(BUSINESS WIRE)--Radian Group Inc. (NYSE: RDN) today announced that it will hold a conference call on Thursday, February 25, 2021, at 10:00 a.m. Eastern time to discuss the company’s fourth quarter and year-end 2020 results, which will be announced after the market closes on Wednesday, February 24, 2021. The conference call will be broadcast live over the Internet at https://radian.com/who-we-are/for-investors/webcasts or at www.radian.com. The call may also be accessed by dialing